Dáil Éireann Debate, Tuesday - 27 September 2022
27. Deputy Violet-Anne Wynne asked the Minister for the Environment, Climate and Communications if he will explore the possibility of decoupling the price paid to renewable energy and other suppliers from that of the increasing wholesale price of gas (details supplied); and if he will make a statement on the matter. [46747/22]
Amharc ar fhreagraMy Department continues to consider options to reduce the impact of increasing international wholesale gas prices on Irish electricity consumers. It is critical to ensure that consumers receive the benefit of windfall gains in the electricity sector resulting from the war in Ukraine.
Earlier this month the European Commission published a proposal for a Council Regulation on an emergency intervention to address high energy prices. This proposal will assist Government in determining whether and, if so, how a windfall tax and other interventions could be introduced, having regard to the overall approach to be adopted at EU level. The monies raised from such interventions would be used to mitigate the impact of the high electricity prices on the final electricity customers. Officials from my Department continue to work with colleagues from across Government and at level EU on these issues.
Furthermore, the European Commission is carrying out ongoing work concerning the long-term market design as announced in it's Communication on Short-Term Energy Market Interventions and Long-Term Improvements to the Electricity Market Design that was issued alongside the Repower EU Plan of 18 May 2022.
Ireland operates within the all-island Single Electricity Market (SEM) and given the electricity market operates across two jurisdictions all impacts, intentional or otherwise, must be considered prior to making any changes to it.
The best, long-term approach for Ireland to lower energy prices is to reduce our dependency on imported fossil fuels, through investment in indigenous renewable energy sources which aligns with the Government's target of up to 80% of electricity to come from renewable sources by 2030.
